Which of the Following Is an Advantage of a Limited

question 127

Multiple Choice

Which of the following is an advantage of a limited liability company compared to a corporation?

• A) Unlike a corporation, the members of a limited liability company are personally liable for the business's debts.
• B) Unlike a corporation, the members of a limited liability company need not file articles of organization with the state.
• C) Unlike a corporation, the members of a limited liability company cannot participate actively in management of the business.
• D) Unlike a corporation, the members of a limited liability company are taxed at the individual level only.

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Definitions:

Industry Structure

The organization or arrangement of the market within an industry, often characterized by the number of firms, product differentiation, and barriers to entry.

Diagram (A)

A graphical representation used to illustrate or clarify information, processes, or systems.

Price

The amount of money expected, required, or given in exchange for something else.

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.